Risks are classified in tolerable, intolerable but manageable, intolerable and unmanageable, hence strategic. We show how the proposed classification is transparent, repeatable and eliminates arbitrary decisions. The classification enables decision makers to foster strategic tactical and operational planning, enhancing their risk informed decision-making capabilities.
At this point liabilities brought to organizations by risk management approaches using PIGs, risk matrix are discussed. The next step is the rational bundling of risks in view, for example, of captive insurance and other common risk transfer/mitigation procedures.
Finally we develop a case history to include risk mitigation roadmaps, compare and test them including complex inter-dependencies in a multi-hazard environment. We demonstrate how convergent, scalable, drillable, updatable risk assessments bring value to projects, operations, corporations.
Table of contents of the Risk triage, bundling and mitigation roadmaps discussion
What’s the matter with the way we do it now?
What do the standards say?
Limitations and flaws of pig-based approaches
PIG Indexes and finally
Acceptability and tolerance
Quantitative risk assessments
Status Quo Analysis: PIGs Approach Before ORE Deployment
ORE Deployment: Converting Risk Register Data into Usable Data
Rational Prioritization of Risks
Updatability and finally
Summary of Results and Benefits
What are the take away from A Practical Integrated Risk Framework For Projects, Operations And Corporations
Determine which risks are tolerable, untolerable but manageable, untolerable and unmanageable, hence of strategic nature. This enhances the operational tactical and strategic planning skills of decision-makers.
Learn how to bundle risks to rationally design captive insurances based on rational risk triages. Finally,
Formulate risk mitigation roadmaps, test them and present their actionable risk integrated framework to top management.
Finally, if you want to read more?
Download for free the chapter titled “The long shadow of human generated geohazards risks and crises”, in the Intech book called “Geohazards caused by human activity”.